Kenya records slowest growth in five years at 4.8pc in 2017

The Kenyan economy expanded by 4.8 percent in 2017, the slowest growth in five years.

The national treasury says the growth was adversely affected by drought, prolonged electioneering period and low revenue growth.

The budget policy outlook paper prepared by the National Treasury further says the year created the most jobs at 817 thousand jobs.

The paper expects economic growth to rebound in 2018 at 5.8 percent.

These combination weakened growth in the first half of the year.

The economy grew by 4.4 percent in Quarter 3, 5.0 percent in Quarter 2, and 4.7 percent in Quarter 1.

The growth was largely supported by robust activities in the service sectors particularly; accommodation and restaurant; real estate; and information and communication.

However, the growth was constrained by weak activities in the agriculture, forestry and fishing; manufacturing; electricity; and financial intermediation sectors.

A budget policy statement by the national Treasury says, at 4.8 percent, the GDP expansion in 2017 was the weakest in five years.

In 2012, the economy expanded by 4.6 percent.

Despite the subdued growth, the economy added 817 thousand jobs, a majority of them in the informal sector.

The policy statement further says per capita income, total wealth divided the population has also grown to 174 thousand shillings.

Treasury expects the economy to rebound in 2018 at 5.8 percent. Due to weak growth treasury has revised down its fiscal framework.

Revenues are projected to drop 1.64 trillion shillings or 19 percent of GDP from the budget level of 1.7 trillion or 19.6 percent of GDP in FY 2017/18.

Deficit, inclusive of grants, is therefore projected at 621 billion shillings which the national treasury plans to plug by borrowing 294 billion shillings from the domestic market and 323 billion shillings externally.



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